JPMorgan Applies to Take Full Control of China Futures Joint Venture

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What’s new: JPMorgan Chase & Co. applied to China’s top securities regulator to increase its 49% stake in its futures joint venture in China to 100%, the American financial giant said Wednesday.

Currently Shenzhen Wallace Rand Equity Investment Fund Management Co. Ltd. holds a 50% stake in the joint venture and a local investment company in Jiangsu holds 1%.

The background: China agreed to scrap limits on foreign ownership of futures companies starting Jan. 1 as part of the gradual opening-up of China’s financial sector to foreign players as pledged in its phase one trade deal with the U.S.

JPMorgan is also seeking full ownership of its Chinese mutual fund joint venture as the caps for foreign shareholders in securities and fund-management firms were scrapped April 1. The bank has already increased the stake in its securities joint venture from 49% to 51%.

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Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)